The Law provides adequate protection for online consumers. Discuss

Authors Avatar

The Law provides adequate protection for online consumers.  Discuss

The Distance Selling Directive (Dir 97/7/EC) was implemented into UK law as The Consumer Protection (Distance Selling) Regulations 2000 and came into force on October 2001, for the protection of consumers in respect of distance contracts and to enhance consumer confidence in distance sales.  To establish the full extent of protection that the Regulations provide an array of UK legislation will first be examined prior to an assessment of the Regulatons itself.

At common law the position is that once parties have entered into a contract, they are bound to complete their bargain on the terms stated, unless the contract has been entered into as a result of mistake, Duress, Illegality  or as a consequence of misrepresentation.

S.13 of The Sale of Goods Act 1979 (SOGA) holds that in contract’s for the sale of goods by description, there is an implied term that the goods will correspond with the description.  This provision is particularly important in relation to online transactions as words and images on sites constitute descriptions.  Secondly, there is an implied term that goods supplied under the contract, during the course of business, are of satisfactory quality (s.14(2))  and that the goods are reasonably fit for any purpose which the buyer expressly or impliedly makes it known to the seller (s.14(3)). Similarly, under s.2(1) the Consumer Protection Act 1987 holds that the supplier will be liable for any damage caused by a defect in a product.

        Furthermore the use of Exclusion Clause’s in contract’s is also restricted under The Unfair Contract Terms Act 1977.  It restricts clauses that attempt to limit liability for negligence, and breach of contract (s.2).

The above examples of consumer protecting legislation, convey that there are inadequate provisions to cater for the needs of the electronic consumer.  In particular the absence of a valid geographical address in e-transactions, means that the above provisions are of limited use as the identity of the supplier is not known.  Moreover, conventional payment schemes have also given rise to various problems such as fraud or credit card detail interception and thus discourages e-shopping. 

The Regulations represent an attempt to reduce the flaws of the above provisions and cater for the needs of e-consumers.  They apply to all ‘distance selling contracts’ between a supplier and a consumer.   The means by which the contract may be concluded are contained within Schedule 1, and though does not contain the Internet, its ‘indicative’ nature would suggest it would be within the ambit of the list.  This also permits the Regulations to be flexible in extending the scope of its provisions to cater for new methods of communication that may arise in the future.  

        Under Reg 7 the Regulations attempt to balance the bargaining power of the consumer and the supplier by requiring the latter to provide the former with certain information in good time before the conclusion of the contract.  These include the price of the product, delivery date and price, characteristics of the goods/services and the identity of the supplier, and these must be in a clear ‘comprehensible manner’.   This provides the consumer with the confidence that it is contracting with a legitimate party and allays any contrary fears.  In addition, under Reg 8 prior to or in good time after conclusion of the contract the consumer must receive written confirmation of the information required under Reg 7 and further information such as rights of cancellation, under Reg 10 discussed below.  This must be in writing or in another ‘durable medium available and accessible to the consumer’ either prior to the conclusion of the contract or in good time thereafter and at the time of delivery at the latest.  Moreover, failure by the supplier to fulfil the contract within thirty days will result in withdrawal and cancellation of any card payment (Reg 19).

Join now!

        To further achieve its aim and compensate for the e-consumer’s vulnerability owing to their inability ‘to see the product or ascertain the service’, Reg 10 provides for the right of withdrawal. This permits e-consumers to cancel contracts via a notice of cancellation, indicating their intention to do so, in writing or other ‘durable’ medium accessible to the supplier but notably, without explanation or penalty.  The time-scale within which the consumer must give notice of it’s intention to cancel begins on the day in which the contract is concluded and expires seven working days from the day after the consumer receives the ...

This is a preview of the whole essay